The consortium, headed by the Power Machines Group won an important tender, conducted by the state company (GP) "Electrical Facilities and Services of Serbia" for reconstruction of the hydro power plant "Gerdap-1" in Yugoslavia.

The Government of Yugoslavia announced the tender for modernisation of the HPP "Gerdap-1" more than one and a half year ago. Initially six companies, including two Russian ones – the CJSC "Energomachexport", the state-owned company "Technopromexport", Alstom Power, VA TECH HYDRO, VOITH SIEMENS HYDRO and LITOSTOJ intended to participate in the tender. The tender committee received projects from three competitors – CJSC "Energomachexport" (the consortium leader with participation of the Power Machines Group enterprises and the Yugoslavian companies), the state-owned company "Technopromexport" and Alstom Power. The project of the last competitor was turned down as failing to meet the terms of the tender.

In its project the CJSC "Energomachexport" put the main emphasis on quality of its work, which will be provided by performing the most critical operation for repair and modernisation of the equipment not on site, but at the Russian plants that produce turbines and generators ("Leningradsky Metallichesky Zavod" and "Electrosila") as well as at enterprises of Yugoslavia.

A significant volume of work (up to 20%) will be carried out by the local Yugoslavian subcontractors.
According to the terms of the project the participants of the Russian-Yugoslavian consortium are to reconstruct the HPP "Gerdap-1", bringing its total capacity of the six power units in services from 171 Mw to 190 Mw. The project is to be completed within 88 months. According to rough estimation the costs of the works, inclusive of the options, amounts to 100 million US dollars.

The Power Machines Group comprises the following joint-stock companies: Leningradsky Metallichesky Zavod, Electrosila, Turbine Blades Plant, Kaluga Turbine Works and Energomachexport – Power Machines.

The HPP "Gerdap-1" was put into operation in 1970 – 1972 and equipped with machinery manufactured by the Russian enterprises that belong to the Power Machines Group.

All together the JSC "Leningradsky Metallichesky Zavod" manufactured and supplied 14 hydro turbines (total capacity exceeding 1200 Mw) and 10 steam turbines (total capacity exceeding 2000 Mw) to various electric power plant in Yugoslavia.